Bassett Furniture Industries, Inc.’s dividend yield is 2.22 percent and its dividend payout is 27.27 percent. This compares to a peer median dividend yield of 1.84 percent and a payout level of 25.74 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 83 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.

Dividend Quality Overview

Over the last twelve months (prior to February 28, 2017), BSET-US paid a high quality dividend, which represents a yield of 1.26% at the current price.

Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.

The ending cash balance, with a dividend coverage of 6.26x, provides a substantial cushion in case of a significant reduction of cash flows in the future.

Dividend Coverage

Over the last twelve months (prior to February 28, 2017), BSET-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.19x), investing cash flow (coverage of -2.46x), issuance cash flow (coverage of -1.95x) and twelve-month prior cash (coverage of 6.47x), for a total dividend coverage of 7.26x.

BSET-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.31x) and net share buybacks (coverage of -0.56x). Thus, the total coverage including share buybacks is 7.82x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item

2012-11-30

2013-11-30

2014-11-30

2015-11-30

2016-11-30

Latest

Dividend Yield (%)

17.59

1.71

2.51

1.67

1.99

2.22

Dividend Payout (%)

60.17

46.81

32.18

18.09

26.03

27.27

A complete list of metrics and analysis is available on the company page.

Company Profile

Bassett Furniture Industries, Inc. engages in the manufacture and sale of home furnishings. It operates through the following segments: Wholesale, Retail, and Logistical Services. The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services. The company was founded by John David Bassett in 1902 and is headquartered in Bassett, VA.

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